BYHEALTH Continues to Expands its Industrial Leadership with Net Profit Attributable to the Parent Company Up by 528.29%

2021.03.08

Later this Friday (March 5), BYHEALTH Co., Ltd. (SZSE: 300146, BYHEALTH or the Company) published its 2020 Annual Performance Report. With resilience and stress tolerance, the Company faced up to and overcome the huge challenge posed by the pandemic in the year.

Dominating market with further expansion of advantage

In 2020, the Company realized a revenue of RMB 6.095 billion yuan up by 15.83% year-on-year, and the net profit attributable to the parent company amounted to RMB 1.524 billion, increasing by 528.29% year-on-year.

Its performance growth is contributed by various factors, implementation of the “science based nutrition” strategy, R&D strength and core market strategy, to name a few. In recent years, BYHEALTH has made continuously greater effort on product R&D, so as to expand the core competitive edge with a view to technology-intensive product. In addition, it has worked on digital construction and advancement in user asset operation at faster pace, leading up to pronounced performance growth and sustainable leading position by market share.

The Year 2020 is the final year of BYHEALTH’s three-year (2018-2020) planning on “new growth period”. Over the past three years, the Company yielded satisfactory results: its revenue and net profit attributable to the parent company increased 96% and 99% respectively when comparing with that in 2017; seen from a broader time frame, to be specific, over the past decade since its IPO in 2010, the Company’s revenue and net profit attributable to the parent company expanded over x times and x times respectively. In a word, the Company has accomplished stepwise but “leapfrog” development. 

BYHEALTH unfalteringly topped the 2020 China vitamin and food supplements market with a market share recording 10.3%, way ahead of the second (6.4%) and third (5.8%) players, oIBP says in a research report. It was also ranked in the first place by market share a year earlier. Year by year, its leading superiority was escalating.

Greater resilience was shown in the Company's performance in pharmaceutical distribution and marketing. Due to the pandemic, China’s drugstore-based Vitamin & Dietary Supplements (VDS) sales shrank 16.9% in 2020, in contrastive to which, BYHEALTH’s revenue from drugstore channel sales nationwide expanded 2.6%. The Company achieved counter-trend growth regardless the downturn in the industry. The Company made more remarkable performance in online channel. In 2020, it achieved VDS market share of 6.98% at Tmall and healthcare product market share of 15.5% at JD.com, both ranking top in their respective markets. Continuously leading in the industry, it consolidated its status as a market leader. 

Asked about the Company's performance in 2020, BYHEALTH Chairman Liang Yunchao said, “We appreciate every crisis by learning, responding and growing with speediness”, “We become stronger after every crisis, where we see an opportunity to change”.

New three-year planning kicks off in 2021 with “science based nutrition” as the key driver

In 2021-2023, BYHEALTH will enter the phase of the new three-year planning. Shifting orientation from fission to transformation, the Company is intended to expand its scope of business with faster sustainable growth in the following three years.

The new three-year planning has four strategic priorities in total and the priority of priorities is the “science based nutrition” strategy. Earlier BYHEALTH proposed “create the strength of ultimate science based nutritional products with a rigorous spirit of science”.

Focused on the technical R&D of new testing technologies, evalsuation method, population database, functional products, knowledge map and intelligent algorithm related to precision nutrition, the “science based nutrition” strategy calls for strengthening research on nutrition science. In this respect, the Company has been fruitful. Over the past decade, it has successfully originated world-leading personalized vitamin particle products and the first personalized vitamin manufacturing equipment connecting with core algorithm; moreover, it also solely developed and established the first fully automatic dried blood spot analysis center for nutrient testing in China. Apart from research on nutrition science, the Company did research on various fields as well, e.g., cardiovascular, anti-aging nutrition intervention or balanced intestinal micro-ecosystem.

Meanwhile, BYHEALTH made unremitting effort in research on nutrition science by teaming up leading tech powers around the world and hereby achieved many state-of-the-art results in the field, “precision nutrition scientific research transfer industry alliance” co-founded with Shanghai Institute of Nutrition and Health, Chinese Academy of Sciences, Netherlands Organization for Applied Scientific Research (TNO) and BASF, Germany in 2017 and "Nutrition and Anti-Aging Research Center" jointly established with Shanghai Institute of Nutrition and Health, CAS in 2019, to name a few.

In 2021, BYHEALTH plans to upgrade its strategy of core proprietary technology and own patented material R&D in all respects, with the purpose of making products with distinctive tech power and differentiated competitive edge on a sustainable basis. So far, the Company has been patented for originating over 60 materials and formulas.

“In the future, China’s VDS will fall into two categories: functionality-oriented healthcare food and fast-moving consumer goods (FMCG) that undervalue functionality but maintain high-frequency product upgrading. The former values corporate hardcore strength in technology R&D. Enterprises will flood into the market but only those with a grip on “sophisticated technologies” will stand out of the fierce competition,” predicted Mr. Liang, “long as the way ahead is, we will hold firm to innovation and blaze a trail”.

Other key strategies including “the whole-chain digitalization”, “a super supply chain”, “the management of users’ assets” and so on are also raised in the new three-year planning. Driven by technology and data innovation, the Company takes aim at greater consumer stickiness. Three years later, it will become more competent in "befriending consumers" in all respects.

Furthermore, the new three-year planning is inclusive of a package of “reforms for revitalization”. By revitalizing organizational structure and relevant mechanisms and products among others, the Company comes up with the idea of building a creative, sharp, efficient and flexible organizational structure and relevant decision mechanisms for operations. Under relevant mechanisms oriented in revitalization and innovation, it will make products with ingeniousness and competitiveness in all respects from technology content to product morphology, so as to meet needs of new-generation consumers.

Last but not least, Mr. Liang shed light on the nature of the new three-year planning--securing the victory in 2024 or later future by building and shaping BYHEALTH’s new core competitive edge from now on. Stay confident strategically but modest tactically.

Start from scratch in dealing with every challenge. Those short-sighted see no future.